write two paragraphs about how interest rates affect our purchasing decisions. Identify the topic sentence in each by underlining it.
Interest rates have a significant impact on our purchasing decisions. The first way interest rates affect our decisions is by influencing borrowing costs. When interest rates are high, the cost of borrowing money increases, making it more expensive for individuals and businesses to take out loans. This can discourage people from making big-ticket purchases such as cars or homes, as the higher interest rates may lead to larger monthly payments or higher overall costs over the loan term. On the other hand, when interest rates are low, borrowing becomes more affordable, prompting individuals and businesses to take advantage of cheaper loans and make larger purchases.
Another way interest rates impact purchasing decisions is through the returns on savings and investments. Higher interest rates can make saving more attractive as individuals can earn more interest on their savings accounts. This may lead to people being more cautious with their spending, especially if they have financial goals such as buying a house or saving for retirement. Conversely, when interest rates are low, the returns on savings and investments are reduced, potentially discouraging people from saving and encouraging them to spend more. Thus, interest rates not only affect borrowing costs but also influence how people allocate their money between consuming and saving, ultimately shaping their purchasing decisions.
In the first paragraph, the topic sentence is: "The first way interest rates affect our decisions is by influencing borrowing costs."
In the second paragraph, the topic sentence is: "Another way interest rates impact purchasing decisions is through the returns on savings and investments."